Timeframe and considerations.
1. Time range: Physical life focuses on the time the equipment is used in terms of technical performance, while economic life focuses on the time the equipment is economically cost-effective.
2. Factors to consider: The main factors that affect the physical life of the equipment include the structure of the equipment, processing objects, production type, work shifts, maintenance and repair quality, etc. The factor that affects the economic life is the life of the equipment when the usage fee of the equipment is within reasonable limits. In the later period of the equipment's material life, losses caused by frequent equipment failures increase sharply. After the equipment is purchased, the more years it is used, the more investment will be amortized each year. The less it is, the more it costs to maintain and operate the equipment.